Monetarists Argue That Setting a Specific Target for Money Supply

question 113

Multiple Choice

Monetarists argue that setting a specific target for money supply is the best policy because:

• A)there are no lags in policy making.
• B)the central bank does not make the target publicly available.
• C)changes in interest rates can take up to 18 months to work their way through the economy.
• D)the velocity of money is not predictable.

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Definitions:

Ovum

The female reproductive cell or egg that, when fertilized by a sperm, can develop into an embryo.

Monozygotic Twin

Identical twins that result from the splitting of a single fertilized egg, sharing the same genetic material.

Organ Donation

The process by which an individual voluntarily offers an organ or tissue for transplantation to someone in need.

Dizygotic Twin

Twins that are formed from two separate eggs fertilized by two different sperm cells, making them genetically similar as siblings but not identical.